News

On 8 November 2018, the Government of the Russian Federation discussed "On Projects
of the Investment Programme and Financial Plan of OJSC Russian Railways for 2019 and
for the 2020 and 2021 Planning Period."

The Company’s investment programme takes into account the measures under
the Main Infrastructure Development Plan, which has been approved by the Government
of the Russian Federation. It also includes the projects stipulated by Russian presidential
decrees issued in May 2018.

The Company’s 2019 financial plan is based on an updated forecast for Russia’s
socio-economic development. The growth of freight loading on the railway network next
year is expected to be up by 1.5% compared to the forecast level of 2018.

The Russian Railways’ 2019-2021 investment programme envisages total funds
of about 2.3 trillion roubles, including over 680 billion roubles in 2019, over 820
billion roubles in 2020 and 745 billion roubles in 2021.

It is planned to complete a number of investment projects during this period, especially
the first stage in modernising the railway infrastructure of the Baikal-Amur and Trans-Siberian
Main Lines, the integrated development of the Mezhdurechensk-Taishet section and the
development and renovation of the railway infrastructure on the approaches to the
ports of the Azov-Black Sea basin, as well as the reconstruction of the Morozovskaya-Volgodonskaya
stretch.

The main set of measures for the development of the Central Transport Hub and approaches
to the ports of the North-Western Basin and the construction of a bypass around the
Saratov Hub, as well as measures to increase the throughput and carrying capacity
of the infrastructure to increase the transit container flow, will be carried out.

Work is also planned on the implementation of Stage II of the modernisation of
Baikal-Amur and Trans-Siberian Main Lines, the development of the Perm-Solikamsk route,
and the construction of a bypass around the Perm Railway Hub.

In the next three years, the implementation of measures aimed at ensuring the sustainability
of the transportation process will continue. It is planned to reconstruct 17,000 kilometres
of railway track, while a significant amount of investment will be directed to upgrading
the companies involved in the track complex, power supply devices and the corporate
information programme, as well as to update the automation and remote control devices.

In addition, the Company will continue to implement projects to improve the transport
access for the country’s population, including measures to develop the infrastructure
of the suburban passenger complex, as well as to reconstruct station complexes for
long-distance traffic.